Budget 2026 made few changes to personal income tax. There is no Personal Income Tax Rebate for YA 2026, resident tax rates stay as they are, and the 250% tax deduction for donations has been extended to the end of 2029.
The more useful news for most households is a set of smaller changes that apply from Year of Assessment (YA) 2027, the tax bill on income earned in 2026. This article sets out what the Ministry of Finance (MOF) and IRAS have confirmed.
Budget 2026 Personal Income Tax: No Rebate, No Rate Change
IRAS’s rebate page lists a one-off Personal Income Tax Rebate for two years only:
| Year of Assessment | Rebate |
|---|---|
| YA 2024 | 50% of tax payable, up to S$200 |
| YA 2025 | 60% of tax payable, up to $200 |
| YA 2026 | None |
The Budget 2026 annex of tax changes contains no rebate for individuals. Its headline rebate was for companies.
Resident rates are unchanged. IRAS’s table “from YA 2024 onwards” runs from 0% on the first $20,000 of chargeable income to 24% on income above $1 million. No change has been announced for YA 2027, so the same table applies. Our guide to how income tax works walks through it.
The short version: Your tax is calculated the same way in YA 2027 as in YA 2026. The changes are at the edges: donations, CPF top-ups that earn matching grants, and the self-employed.
The 250% Donation Deduction Is Extended to 2029
Donations to approved Institutions of a Public Character (IPCs) get a tax deduction of 2.5 times the amount given. This was due to lapse for donations made after 31 December 2026.
Budget 2026 extended it to qualifying local donations made from 1 January 2027 to 31 December 2029. It covers cash donations to IPCs and the Government, gifts of listed shares and unit trusts, artefacts, land and buildings, and public art.
For individuals, nothing changes in practice. Give your NRIC or FIN to the charity and IRAS applies the deduction automatically in the following YA.
CPF Top-Ups That Earn MediSave Matching Lose Relief
IRAS confirms that cash top-ups to MediSave Accounts that attract the Matched MediSave Scheme (MMSS) grant will not qualify for CPF Cash Top-up Relief from YA 2027, for top-ups made from 1 January 2026.
This follows the same rule for the Matched Retirement Savings Scheme (MRSS), where matched top-ups have not qualified since YA 2026. The overall limits are unchanged: up to $8,000 of relief for top-ups to yourself and up to $8,000 for family members. Details are in our article on CPF cash top-up relief limits.
Platform Workers and the Self-Employed
Two changes affect people who are not employees.
- CPF top-ups by platform operators. Budget 2026 lets platform operators claim a tax deduction for MediSave top-ups made on behalf of their platform workers under the Voluntary Contributions to MediSave Account scheme. It applies from YA 2027 for top-ups made from 1 January 2026. The deduction goes to the operator, not the worker.
- A 20% fixed expense deduction. IRAS says a broad-based Fixed Expense Deduction Ratio of 20% will be introduced from YA 2027 for self-employed people whose income is not covered by the existing industry ratios. It applies where gross income from each type of business is no more than $50,000. See our news story on the fixed expense deduction ratio.
MOF’s consultation papers on the Finance (Income Taxes) Bill 2026 also proposed extending the tax exemption for employer-subsidised childcare to MOE Kindergartens from YA 2027.
Reliefs That Have Lapsed or Been Widened
A few earlier changes still catch people out when they file:
- Course Fees Relief was discontinued from YA 2026. YA 2025 was the last year it could be claimed, and it has not been reintroduced.
- Foreign Domestic Worker Levy Relief lapsed from YA 2025.
- Life Insurance Relief was widened from YA 2026 to cover premiums wives pay on their husbands’ life policies.
- Spouse Relief was widened from YA 2026 to cover maintenance that legally separated wives pay to their husbands.
The full list of personal tax reliefs shows what you can still claim for YA 2027.
What To Do Next
- Run your 2026 income through our income tax calculator, which covers YA 2027.
- If you top up a family member’s MediSave, check with the CPF Board whether the top-up attracts an MMSS grant before counting on relief.
- If you are self-employed with small revenue, compare the 20% ratio with your actual expenses before filing in 2027.
- For anything specific to your situation, check IRAS’s pages or speak to a qualified tax professional.
